Prop Trading -- Which banks?
So, JP exited prop, so did DB I hear. But GS and UBS are still hanging there (UBS I mean their vol forecasting prop trading group).
Which of the BB's still keep an active prop desk?
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CS and rbc have specific divisions
gs will always be there. its bread and butter.
Good luck getting in. This is probably the most sought after position in all of trading outside of elite HF's So many of the big players have exited the market.
anyone have other info about CS prop trading? are they likely to stay in the market? are they able to compete with the full-time prop shops?
JPM still have prop desks; usually go by the name of [Asset Class] Strategic Proprietary Trading
They do in London anyway.
everyone still has prop desks, they just do not have as much risk to play with ... the general thinking is that the i-banking business does not want to be deriving 20-30% of quarterly profits off something like prop ...
it was probably a mistake to cut so soon, will probably see hiring in this space.
in particular, many traders were fired from the shops you talked about, though i'm sure most landed on their feet and in a year of normalization, are killing it elsewhere...
unless the desk is the flowest of the flow, most mkt making desks will keep prop-esque punts on as well (vol desks)... and especially in fields that have been algo-ized (spot fx, spot govt's, cash equities --> flow trades are executed on commission basis, punt all day)
basically, a rule of thumb: if the desk or division or firm lost money via risk last year it is extra-conservative this year, and if it didn't, it is risk taking. very few cases of the opposite happening. hence, why those with the opposite attitudes are doing very well (e.g. gs).
Haha, great way to put it.
As of mid 2010, post Volcker rule and EU regulatory environment rapidly shifting, would anyone have view on prop trading ability of GS, UBS, DB, CS, JPM, BofA/ML?
Also which of these have special situation / medium to long term investment books with focus on equities/corporate debt?
Thanks!
JPM still has a prop desk.
Their Macro desk is still going strong and we trade with them everyday.
Just curious... do you know what this desk is officially called within JPM? Is it on the asset management side or S&T side?
UBS has cut back a lot on prop trading, the last I heard they're looking to exit prop totally and stick to flow.
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